Nextraction Announces Q3 2010 ResultsDecember 1, 2010
Company establishes production and first revenue in both liquids-rich gas projects
Vancouver, BC - Nextraction Energy Corporation (TSX-V: NE) (the "Company"), announces the Company's unaudited financial results for the three and nine months ended September 30, 2010. For complete details of the Q3 2010 Interim Financial Statements and Management's Discussion and Analysis, please refer to the Company's filings on SEDAR (www.sedar.com) or the Company's website at: www.nextraction.com. All amounts herein are reported in Canadian dollars unless otherwise noted.
Highlights of Q3-2010 are:
Established production at our 14,888 foot deep Noble 6-24 well on the Pinedale Anticline by fracing and completing the lower productive intervals. The lower zones of the well flowed 50.62 million cubic feet of gas (MMCFG) and 1,278 barrels of condensate with the majority of the production from July and August.
Mountain Minerals #5 well in the Appalachian Basin had an initial flow rate of 45 BOEPD (270 MCFGPD) at the depth of 2,050 feet and proved the Chattanooga shale is capable of production from a vertical well, an important first step in proving the viability of the property.
The Company generated oil and gas gross revenues of approximately US$358,000 in its first quarter of production despite the price of natural gas averaging under US$3.80 per MCFG and intermittent production from the completed wells while completion operations were underway. Liquids rich gas increased revenue by 25-40% over the posted the price.
The Company raised $7 million over the past 12 months and invested it through the drill bit generating value and organic growth.
Subsequent to the quarter:
The Company shareholders exercised 3,458,713 warrants generating gross proceeds to the Company of $2,248,163.
The Company commenced permitting a 2-D seismic program in the Pinedale anticline area and exercised its option to drill a second well on the same terms as the Noble 6-24 well. The second well will commence in Q1 2011.
The Company finalized its geological evaluation of the Appalachian Basin project and has defined its proposed development strategy for the Chattanooga shale; we are re-entering and completing 2 wells before year end using a propellant frac technique and plans to drill a horizontal well in Q1 2011.
About Nextraction Energy Corp.
Nextraction Energy Corp. is a Canadian junior oil and gas company engaged in the exploration and development of oil and gas resources in North America. Nextraction targets projects along trends with known reserves that provide low risk, high return development opportunities in both conventional and unconventional resource projects, where our technical expertise can be applied to enhance production. The Company is also evaluating further acquisitions that fit the model of the "next round of extraction on known plays." Nextraction is headquartered in Vancouver, BC, Canada, with an operations office in Golden, Colorado.
For further information on behalf of Nextraction Energy Corp., please contact:
Mark S. Dolar
President and Chief Executive Officer
Nextraction Energy Corp.
Toll Free: 1-888-630-0370
Certain statements made and information contained herein may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. These statements relate to future events or the Company's future performance. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "may have", "could", "would", "might" or "will" be taken, occur or be achieved. Although management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements speak only as of the date of this Press Release and are expressly qualified, in their entirety, by this cautionary statement.
In particular, this Press Releasecontains forward-looking statements, pertaining to the anticipated benefits resulting from our various Farm-in and Joint Venture Agreements relating to the Company's projects; oil and gas resource estimates, future production and future net revenue; the Company's future capital and other expenditures and requirements; results of exploration and development activities and dates by which certain areas may be developed or may come on-line; the Company's future financing and capital activities, contingent liabilities and environmental matters; and expectations regarding the Company's ability to obtain additional financing on satisfactory terms.
The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below herein pertaining to general economic conditions; volatility in the market prices for oil and gas; stock market volatility; uncertainties associated with estimating resources; geological, technical, drilling and processing problems; ability to explore, develop, produce and transport crude oil and natural gas to markets; title to oil and gas leases; dependence upon farm-out and joint venture partners; liabilities and risks, including environmental liabilities and risks, inherent in the oil and gas industry; fluctuations in currency and interest rates; economic conditions in the countries and regions in which the Company carries on business; competition for, among other things, capital, acquisition of reserves, equipment, undeveloped lands and skilled personnel; lack of availability of additional financing and unpredictable weather condition.
Should one or more of these risks and uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information.
Although the Company has attempted to identify factors that may cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actual results, performances, achievements or events to not be as anticipated, estimated or intended. Also, many of the factors are beyond our control. As actual results and future events could differ materially from those anticipated in such statements and information, readers should not place undue reliance on forward-looking statements or information. Except as may be required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.
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